The United Cotfab IPO is set to begin its subscription phase from Thursday, June 13, until Wednesday, June 19. Each equity share is priced at ₹70 with a face value of ₹10, and investors can purchase shares in lots of 2,000 shares.
United Cotfab is a renowned manufacturer of high-quality open-end yarns catering to the textile industry. Renowned for their stringent adherence to quality standards, the company employs cutting-edge technology and machinery throughout its production process. The company is spearheaded by its founders, Nirmalkumar Mangalchand Mittal and Gagan Nirmalkumar Mittal, who collectively possess over 55 years of experience in the cotton textile sector.
Market Analysis
According to the Red Herring Prospectus, United Cotfab’s listed peers exhibit significantly lower Price-to-Earnings ratios. The basis of share allocation for the IPO is expected to be finalised on June 20, with refunds commencing on June 21. Shares will be credited to investors’ demat accounts on the same day, and the IPO shares are scheduled to be launched on BSE SME on June 24.
Valued at ₹36.29 crore, the IPO comprises a fresh issuance of 5,184,000 equity shares at a face value of ₹10 each. The proceeds from the fresh issuance will be allocated towards working capital, corporate purposes, and IPO expenses.
Advisory Team
Beeline Capital Advisors Pvt Ltd is the appointed book-running lead manager, while Purva Sharegistry India Pvt Ltd is the registrar for the United Cotfab IPO. Additionally, Spread X Securities has been appointed as the market maker for United Cotfab’s IPO.
As per the grey market, the IPO’s grey market premium is +18, indicating a ₹18 premium on Tuesday. With this premium, the expected listing price of United Cotfab shares is ₹88, representing a 25.71% increase over the IPO price of ₹70. The grey market premium reflects investors’ willingness to pay more than the issue price.
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